This packet contains student materials and a teacher's resource book. The materials present students with many of the same questions vexing U.S. policy makers in their dealings with China. Students explore background materials and debate policy options as to what relations with China should be. The student booklet contains background essays for students on: (1) "The History of U.S.-Chinese Relations"; (2) "China's Transformation"; and (3) "The U.S.-Chinese Agenda." Students are then presented policy options as to what the relationship with China should be. Options include: (1) "Press for Democratic Values"; (2) "Promote Stability and Trade"; (3) "Tame the Dragon"; and (4) "Keep Our Distance." Supplementary documents and suggested reading conclude the booklet. The teacher's resource book suggests a 5-day lesson plan and contains the day-by-day lesson plan and student activities. An alternative 3-day lesson plan is provided. (EH)